SUSTAINABILITY OF MICROFINANCE AND HOUSEHOLD ACCESS TO CREDIT: EVIDENCE FROM CÔTE D’IVOIRE
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Date
2014-01-23
Authors
TOGBA, Leadaut Edith Prisca
Journal Title
Journal ISSN
Volume Title
Publisher
University of Felix Houphouët Boigny
Abstract
The attainment of sustainability is critical for the long term viability of microfinance
institutions (MFIs), which provide a set of financial products to all those excluded from
formal financial system, in particularly to the low income households. But, such
preoccupations force some MFIs to divert from their social missions in favor of profit.
This thesis is out to propose mechanisms that will permit MFIs not only to be long lasting
but also to reduce the credit burdens on households in Côte d’Ivoire, in other to mutually
satisfy MFIs and households
By using simultaneous equations and Heckman two steps models as well as the model of
Stackelberg, the study brings out that a good capitalization or equity and the low
administrative costs have important effects on the sustainability of the MFIs. Then,
Savings and the grants remain only the resources facilitating the accessibility to the credit
of the poor borrowers. However, as it is shown in this thesis by the model of Stackelberg,
the usage of subsidy as a way of financing the extension of credit in the low-income
households is effective only if the proportion of rich borrowers is high. Besides, from the
analysis of credit source choice, the results reveal the size of the loan, agricultural
purpose, the geographical area where households live and ethnicity as factors influencing
the choice for formal sources.
Description
Keywords
Credit access